Trade patterns and global value chains in East Asia: - IDE-JETRO

China’s customs trade figures show that in 2009 nearlyhalf of its exports originated from processing zoneswhile one-third of its imports were bound to such zones.Around two-thirds of China’s processing trade wasundertaken by foreign owned enterprises.As a result of such strong export-oriented activities inits EPZs, China became the world’s leading exporter ofmanufactured products in 2008, and the leader in totalmerchandise exports in 2009.Currently, a considerable part of the exports of manydeveloping economies originate in EPZs (see Figure 2).The overall impact on their economies is substantial, withthe resulting value added (approximately the differencebetween the value of the exports of processed productsand the cost of the imports of intermediate inputs)equalling some 30 to 35 per cent of the exportedproducts.Figure 3Goods for inward processing in developing economies’ total exports and imports, 2000-2008(in billions of US$)I. From massdemand to globalsupply chainsII. Organizationof the globalproduction processIII. Infrastructureservices in globalvalue chains60005000ExportsIV. The evolutionof tariff policies400030002000V. Foreign directinvestment100002000 2001 2002 2003 2004 2005 2006 2007 2008VI. Integrateddiversity60005000Goods resulting from inward processingOther goodsImportsVII. An evolutionaryperspective onproduction networksin the Asia-US region400030002000VIII. Trade inintermediate goods100002000 2001 2002 2003 2004 2005 2006 2007 2008IX. Vertical tradeand trade invalue addedGoods for inward processingOther goodsSources: IMF balance of payments statistics and WTO estimates.X. Cross-regionalspillover ofeconomic growth23